What the thing is
The experience economy is the sale of memorable experiences to customers. Memory becomes the product. Advanced versions charge for transformation—like education that monetises the value created by an educated person.
Where it came from
Pine and Gilmore named it in a 1998 article. They positioned it as the successor to the agrarian, industrial and service economies. Antecedents include Toffler (1970), Holbrook and Hirschman (early 1980s), Schulze (1992) and Jensen (1996).
What it gets right
It names a real pressure: services are becoming indistinguishable due to technology, competition and rising expectations.
What it gets wrong
It misattributes novelty. Schulze observed ‘experiencing life’ in Nürnberg in 1992. Jensen wrote of a ‘Dream Society’ in 1996. Pine and Gilmore did not discover the shift—they branded it after the dot-com boom inflated its promise.
Why it matters now
Because its logic has bled into public infrastructure, museums, schools and healthcare—where ‘user experience’ now often displaces functional design, equity or evidence-based outcomes.
Is it worth your time
Yes—if you work in retail, tourism, education or public services, and want to understand why ‘customer journey’ maps now dominate strategy decks.
